International Baccalaureate:

Extended Essay in Business Management

UNIQLO

Research Question: “To what extent can the implementation of a market development strategy
in Argentina help UNIQLO enter into the Latin American Market?”

Word count: 3,960

1
Table of Contents
1. Introduction……………………………………………………………….….……………3
2. Methodology………………………………………………..…………….……………… 4
3. Theoretical framework ……………………………………………………………………5
3.1 Consumer profiles ………………………….…………………………………5
3.2 Market Segmentation…………………….……………………………………6
3.3 Targeting ……………………………..……………………………………….6
3.4 STEEPLE analysis ……………………………………....……………………6
3.5 Marketing Extended……………………………………..………….…………7
3.6 Budget…………………………………………………………………………7
4. Diagnostic ………………...………………………………………………………………7
4.1 UNIQLO ………………………………...……………………………………7
4.2 STEEPLE analysis of Argentina………………………………………….….12
5. Proposal/Analysis and discussion……………………………………….……………….14
5.1 Marketing Mix Extended…………………………………………………….15
5.2 Budget……………………….……………………………………………….18
6. Conclusions………………………………………………………………………………19
7. Works Cited…………………..………………………………………………………….21

2
 1. Introduction

UNIQLO is a clothing apparel company, originally founded by Hitoshi Yanai in

Yamaguchi, Japan in 1949 as a textiles manufacturer. His 22 men’s tailoring stores were then

inherited by his son Tadashi Yanai, the current president of the business. This company mainly

focuses on designing, manufacturing, and retailing casual clothing.1 UNIQLO currently sells in

more than 20 countries with over 1000 stores around the world. This company once started as a

men’s clothing shop called “Men’s Shop OS” but later evolved into what today is called

UNIQLO.2

The company has become a global fast fashion retail market in recent years, and despite

having to compete against other outstanding fast fashion companies, it managed to grow at an

astounding pace. Many succeeding key factors of the company involve its commitment to

innovation and culture. Tadashi Yanai, has indoctrinated his 23 management principles in each

and every aspect of the business.

UNIQLO has managed to successfully define a clear brand promise to provide high

quality, universal, basic casual wear at affordable prices. It’s also able to stay close to customer

needs thanks to its planning, designing, manufacturing, and distribution capabilities. However, it

does deal with certain challenges, mostly due to competition.

The business hasn’t yet expanded to Latin American markets, and it seems like its

strategies haven’t enabled the business to do so, as Latin American markets differ and aim for

3
something different. Additionally, UNIQLO has no experience operating in Latin America, an

area distinctive from Asia, Europe, and North America.

This report aims to find a solution for UNIQLO to be able to expand to the Latin

American market through Argentina. While the business has no experience in this country, it

wouldn’t be able to succeed as the strategies that the business uses to operate on Asian markets

aren’t favorable for it. For which, it could adopt a new marketing strategy and expand globally,

not only in Asian and European markets, but also in a new market with a different marketing

strategy.

2. Methodology

This Extended Essay will utilize a different range of reliable sources including articles,

journals, and well-sourced information. By drawing from these various sources, the aim is to

acquire a comprehensive understanding of the case. By doing so, a strong proposal can be

constructed thoroughly. These sources will serve as the foundation for our analysis, ensuring the

credibility and validity of the research findings.

Additionally, with the use of distinct marketing business tools such as: A STEEPLE

Analysis, consumer profiles, market segmentation, and targeting, problems or issues that the

business is going through are going to be assessed, and based on this, a market development

strategy will be developed. To construct an enhanced proposal, a Marketing Mix Extended and

Budget will be used as the basis and accordingly be applied into a marketing strategy for the

proposed market.

4
 3. Theoretical Framework

Under the different theories of marketing, the introduction of UNIQLO into a new

country can be completed. Initially, this investigation will make the use of different articles and

websites that can contribute to the overall analysis of the business in a new market. To gain a

better understanding of the current position of UNIQLO in the fashion industry, different

marketing tools, such as consumer profiles, market segmentation, and targeting, will be

employed. In this way, the information gathered will help me develop a better strategy to enter

into a new market where UNIQLO has good chances of being successful.

To develop a concrete market development strategy, the use of a STEEPLE analysis will

be used. The current market proposed to enter is going to be analyzed through the investigation

of data about the fashion industry present in Argentina. Like this, a better proposal can be created

using a Marketing Mix Extended and a proposed Budget. With these marketing tools, it can be

defined how UNIQLO could be benefitted from a new marketing strategy.

3.1 Consumer Profiles

Consumer profiles are used to identify the characteristics of consumers of a particular

product in different markets. This includes: gender, age, social status, income levels, and

spending patterns of consumers. 12

5
 3.2 Market Segmentation

Market segmentation is a process that consists of dividing the market into segments,

subgroups of consumers who share similar characteristics. There are three main types of

segmentation: demographic segmentation, geographic segmentation, and psychographic

segmentation.

Demographic segmentation is the varying characteristics of the human population in a

market including age, gender, religion, family characteristics, and ethnic grouping. Geographic

segmentation centers in different geographical sectors in a country considering factors like

religion, climatic conditions, or where consumers reside. Finally, psychographic segmentation

divides the market based on people’s lifestyle choices or personality characteristics.12

3.3 Targeting

Targeting is a process of marketing to a specific market segment by using the following

strategies: mass marketing/undifferentiated marketing, segmented marketing/differentiated

marketing, and concentrated marketing/niche marketing. 12

3.4 STEEPLE Analysis

The STEEPLE analysis is a business tool that helps an organization scan the external

environment to later on act upon these factors that may affect the organization. This term stands

for social, technological, economic, environmental, political, legal, and ethical.

6
 3.5 Marketing Extended

The Extended Marketing Mix (7Ps) helps companies define their marketing strategy

through 7 important factors which include: Product, Price, Promotion, Place, People, Packaging,

and Process. This business tool helps the business define clear marketing strategies, objectives

and future activities.12

3.7 Budget

A budget is a quantitative financial plan that estimates revenue and expenditure over a

specified future time period. It identifies available capital, estimates spending capital, and helps

in predicting revenue.

4. Diagnostic

4.1 UNIQLO

UNIQLO, like nearly every other big business today, once started as a humble one.

Today, the business is standing at a worldwide position and has been performing well. According

to financial reports of the business in 2022, there has been an increase in profits and sales, in

comparison to those in the past years.3 The business has been expanding in many regions

globally, including Asia, Europe, and North America. As it saw good results in 2022, it plans on

accelerating new store openings in 2023.4

Every August of every year, the business reveals its revenues and further information on

the business. Below, we can perceive the profits of the business in 2022 and to date in 2023.

7
 References: [Link]

As an overview, UNIQLO experienced another record performance and increase in

profits in 2022 as well as 2023. In 2022, with a revenue of 2.3011 trillion yen (+7.9%

year-on-year), the business saw itself in a good position as it was able to achieve its record

results. Similarly, 2023 revenues in the business demonstrate good patterns and good guidance

for the future as the first-half revenue and profits rose considerably due to strong performances

in all international operations. The business consolidated all this data by also supplying

information about its performance by Group Operation, where we can appreciate revenue made

in the international market.

Below, the table displays the performance of the business by Group Operation. We can

see, specifically, in UNIQLO International, that there are large revenue and profit gains, and that

the business is experiencing a phase of growth in this market.

8
 References: [Link]

Having a good amount of revenue in the International market itself is a good sign for the

business as new opportunities can be perceived in this sector and new targets can be set. It would

be advantageous for the business to continue growing and achieving its plans in the International

market, aiming for new targets, as, if managed and established well, it can perform greatly and

increase profits.

The business’s plans are looking forward to creating better environments for customers

when shopping, as well as expanding and opening new stores in different sectors. UNIQLO is

currently working on innovating eye-catching concept retail spaces, aiming to employ

9
environmentally friendly technology. For 2030, the business looks forward to its greenhouse gas

reduction targets, cutting their greenhouse gas emissions by 90% in comparison to 2019 levels.6

This sustainable plan will not only be advantageous for the environment, but it can be key

to having a better brand image and attracting customers. And most importantly, these innovations

can guarantee a boost in annual sales to ¥10 trillion in 10 years, as the company’s CEO, Tadashi

Yanai, expects. 6

Below, the table shows the company’s target market, the group of people the business

wants to sell its products to. This consumer profile shows the age, gender, interests and social

class that the business aims to.

UNIQLO’s consumer profile

Age 18 - 40 years

Gender Males and Females

Interest People attempting to find trendy and

casual clothes

Social class Working-class, middle-class, and

upper-class

References:[Link]

10
 It can be perceived that UNIQLO aims for a wide range of customers. They target their

customers by psychographic segmentation, focusing on the different social classes and allowing

them to have a broader market of customers to purchase their products.

Despite its big success, UNIQLO hasn’t been present in Latin American markets. There

are several possible reasons for this decision. As it has been seen, the business is at its peak, as it

is only experiencing an increase in revenues and having great results these last years. If the Latin

American markets were to be analyzed in depth, like with every other market, it has negative

aspects, but UNIQLO could aim at this market because, overall, the Latin America market has a

great advantage where the business could expand to.

First, Latin America has been experiencing economic and political instability in recent

years. Similarly, entering a new market requires extensive research and analysis. UNIQLO might

need to find a way to stand out from the variety of other established brands present in the market.

However, this wouldn’t be an issue as UNIQLO already has a well-established strategy to attract

customers and the products it offers are outstanding from the rest. Some adjustments in its

strategy would only strengthen its entry in Latin America.

To successfully enter into the Argentinian market, it's important to highlight the external

factors that might affect the business’s operations and then use this as a tool to develop an

effective strategy. As the proposed country to enter is Argentina, it would be best to use a

STEEPLE analysis and assess these external factors acting as a barrier for the business’s growth.

In this way, better ideas can surge for the final marketing strategy proposal.

11
 4.2 STEEPLE Analysis of Argentina

Argentina is the second largest country in Latin America and is one of the most populated

countries. This country is currently one of the countries with the fast fashion industry in its peak

in Latin America. It’s currently one of the most visited countries as many foreigners and tourists

aim to travel to Argentina for different reasons.

Its population is around 45.38 million people (2020). Overall, the living standard of the

country is high, and education and healthcare is considered to be better than other countries.

Argentinians are well-known for their interests in fashion as they like keeping up with global

trends and constantly have changing consumer behaviors.

Besides, tourism is significant and is a constant economic-growing factor in the country.

The Ministry of Tourism and Sports in Argentina stated that in summer 2021/2022, an

approximate of 1,072,213 visitors have entered Argentina. With this, it can be perceived that

there is a good variety and diversity of people roaming around this country, who are also

contributing to the economy.14

The technological sector has also increased in Argentina, opening more opportunities in

different aspects to the country. With an expected growing e-commerce market, “Argentina is the

35th largest market for eCommerce with a predicted revenue of US$88,890.4 million by 2023.”
15
Due to the significant increases of online shopping and an already great established

12
technological advance in e-commerce and digital infrastructure, it can be seen that there is a

willingness to embrace technology-driven retail experiences present.

On the other hand, Argentina’s gross domestic product is approximately US$487.23

billion.9 After the pandemic, the economic activity was able to recover however inflation still

remains high. Nonetheless, due to tourism and Argentinians in general, there is a large consumer

market as well as revenue. It has been seen that Argentina has generated US$740 million only

from the increasing number of tourists entering the country in 2021/2022 and it is expected to

keep on growing.

Tourists tend to consume and purchase a lot in Argentina mostly because of the currency

fluctuations that exist. Data says that revenue from the apparel industry amounts to US$4.40

Billion in 2023.12 Apart from that, Argentina has experienced currency volatility, which can

have an effect on pricing and profit margins for businesses entering into this country.

In terms of environmental factors, the country exports many natural resources since they

are crucial for the country’s economic development. Although it suffers certain environmental

challenges like water pollution, air pollution, deforestation, and industrial waste. There is more

sustainability awareness of environmental issues and sustainable fashion from part of the

population.

Compared to other Latin American governments, the Argentinian government is quite

stable. It allows the country to attract multinationals and businesses, and the government is

13
developing a political infrastructure to get foreign investors. This 2023, on October 22nd, there

are upcoming elections in the country, for which it would be necessary to look forward to the

new government that could be chosen. Similarly, trade policies and regulations should be

navigated by UNIQLO, to ensure smooth operations and compliance.

”The country’s legal and government system is quite comprehensive as compared to

7
neighboring countries”. Therefore there wouldn't be any issues, however, it's important to

assess the political stability of Argentina as it impacts business environments and possible

foreign investments.

Lastly, the relationship between the worker union and the government is good. The

minimum salary payment in Argentina is ARS$ 112,500.00 per month, which equals US$321.46.

Like in any other country, UNIQLO would need to ensure compliance with labor laws and

human rights standards, as well as new social constructing ideas that could affect any brand’s

image.15

5. Proposal

After analyzing Argentina and UNIQLO in depth, a solid proposal for the entry of this

business into a new market can be made. It has been seen that the Latin American market is

different from those where UNIQLO is present in, however, Argentina, a key country in South

America, could actually be a great start for UNIQLO in this continent.

14
 With its rich culture, fashion-forward population, and strong economic growth, Buenos

Aires, the capital of Argentina, would be a great starting point due to the increasing number of

tourists visiting this city. Out of the 6 millions of tourists visiting the city in 2022, a grand

majority of them came from other Latin countries like Brazil, Uruguay, Chile, Peru, Colombia,

Ecuador, Bolivia, and Paraguay. 17

With that being said, the main objective of establishing in Buenos Aires would be to get

UNIQLO to be known in the market through tourists coming from other countries in Latin

America. This could facilitate the expansion of the business in the near future and be greatly

recognized among Latin Americans.

5.1 Marketing Mix Extended

As Argentina does experience its four well-defined seasons, seasonal clothing that the

business exhibits would be sold and presented in the store. LifeWear, the simple, high-quality,

and everyday clothing or AIRism, the comfort conditioning technology clothing that UNIQLO

has established for its customers would be key clothing to be sold in Argentina. At a starting

point, these goods would contribute to a better understanding of the needs that customers look

after in fashion. In this way, UNIQLO would be able to specifically bring more products of a

kind in different upcoming seasons.

With inflation being a constant issue businesses deal with in Argentina, the best solution

for a new business in the country would, therefore, be, adapting to the fluctuations and external

factors being present. The base for prices should lie on market research, competition, local costs,

15
and brand position. After that, depending on the situation, UNIQLO would increase prices

gradually for a couple of months.

To a certain extent, price wouldn’t be a problem for tourists as they have great buying

tendencies and tend to spend a great amount of money when travelling to other countries. For

which, UNIQLO’s product prices in Buenos Aires would be followed up by competitive pricing

and penetration pricing, where prices can fluctuate according to the factors mentioned

previously.

The key to being known in the market is the way in which a business promotes itself. For

the business to effectively reach its target market, it would develop a promotional mix with

attractive above-the-line and below-the-line promotion strategies. It should opt for informative

and persuasive advertising as the starting objective of the business is to get known by consumers

and called out to buy the goods that UNIQLO is offering. And to be more dynamic, it could

partner up with famous Argentines, such as soccer players. As the business is a fashion company,

it’s got many different options for its promotional activities. Public relations, using publicity or

sponsorships, and sales promotions, like money-off coupons or free offer offers and gifts, will

help the business be better known and sell at a wide range.

And most importantly, all promotional strategies should include social media as

popularity of businesses today lies on social media. What the business would aim is to gain

brand awareness using social networks where interactions happen, and fast sharing of

16
information occurs. With this, it can be guaranteed that people will know the existence of the

business in Argentina.

In terms of place, it was better seen to get established in Buenos Aires due to its

advantages in tourism and in general. However, the place where the business is located should be

at easy eyesight for customers, more for tourists, aiming for those places where tourists

constantly wander through. What UNIQLO would look forward through this positioning, is

being posed as a showcase where customers can see the presence of the business, although not

always buying from the business, they will know the easy approach they have to the business and

the word can be passed onto other people, expanding the range of customer opportunities.

Despite the main Four Ps, it’s equally important to organize this new store through

effective people management, process management, and physical evidence management.

In terms of people and human resources, it is proposed that the business follows a

functional organizational structure, where there are distinct areas with specific tasks. This is

advantageous as knowledgeable people will skillfully make their area work effectively and

efficiently. Employees will also follow up a training process as service delivering is a key factor

for customer satisfaction and for first impressions made. Employees should follow on-the-job

training and induction as they can learn from experienced workers brought up by the business

and similarly get familiarized with the business functions, aims and objectives, and processes.

17
 Since UNIQLO already has a shipping process as an international business, there

wouldn’t be any problems with that aspect, instead, delivery processes in Latin America could

work faster and effectively with the presence of a new store in this continent.

And at last, for customers to be convinced of the great quality the business offers in its

products, the store being opened should comply with this task. As this brand is new in the

market, they will be curious to know more about it, so the store shouldn’t only present its

products in the store but it should feature them in a creative way using traditional elements that

identifies the business.

5.2 Budget

Finally, creating a budget for opening a new UNIQLO store in Buenos Aires requires a

detailed analysis of various cost factors including, store rents and renovation, installation and

setup, equipment, inventory, marketing and advertising, staffing and training, operational

expenses, and legal costs. UNIQLO currently opens around 20 to 30 new stores yearly and is

closing those who don’t seem to be so successful. Due to its increasing revenue, there wouldn’t

actually be any issues in terms of costs, instead, assessing the best way to use investing resources

to guarantee the effectiveness and success of the business in Argentina.

When speaking about budget both direct and indirect costs should be assessed. The

business would need to consider the store’s setup, the inventory, marketing and advertising,

employee training and salaries, legal compliances, operational and administrative expenses, and

others.

18
 Setting up a retail space can be a bit expensive if the business wants to open in a store in

commercial points, but it’s advantageous as there is a good amount of movement and

opportunities in that place. Similarly, creating an inventory with the necessary stock and

knowing how to promote these products is costly to a certain extent. The whole process of

recruiting and training employees is an investment and requires enough capital to carry a strong

workforce. The business should also comply with salaries of employees considering the

country’s minimum wage and everything an employee should be provided according to the law.

Likewise, the business should invest its capital on a lot of market research. It’s important

to analyze a new market in detail, so that based on that, desired ways of marketing the business

can be employed and successfully reach a wide range of potential customers. And last, but not

least, all operations and administrations can be costly and require close attention and

organization to have the business work with no issues.

6. Conclusions

Analyzing Argentina as a key country for the entry of UNIQLO into Latin America into

depth, contributed to an effective marketing strategy focusing on key points where the business

should look at, not only in Argentina but in other countries if it were to expand in this continent.

The implementation of a market development strategy can, therefore, help UNIQLO enter the

Latin American market to a large extent, by facilitating its entry in many aspects.

19
 Setting foot in the Latin American market through Argentina could bring good results to

UNIQLO. Not only could it get well-established in this market, but the fact that many tourists

visit this country could be a great opportunity to later expand into other countries. Despite having

established competitors like Zara, the business differentiates itself as its aims and goals are a

unique point that customers could get interested in. Through a comprehensive analysis of the

research question, it is evident that Argentina offers potential, favorable conditions and

opportunities for the business’s expansion.

Moreover, this proposal could effectively be used to enter other Latin American markets,

adapting this new strategy only for Latin America and successfully being a well-known brand in

this wide market. It’s important to note that this market differs from Asia or Europe, continents

where UNIQLO performs pretty well. Therefore, at the moment of implementing a strategy,

external factors of the desired market should be analyzed consistently, and the business should

then act upon those factors.

Maintaining good relationships with customers and trying to get closer to them in all

ways possible is a way to effectively penetrate their minds and get the business to get

well-known and more prominent in the market. In this way, the market has good chances of

growing and expanding when they see an opportunity in a demanded market.

Thus this essay has answered the research question: “To what extent can the

implementation of a market development strategy in Argentina help UNIQLO enter into the

Latin American Market?”

20
 7. Works Cited

1. UNIQLO. “About UNIQLO” UNIQLO, Fast Retailing Co.,

Ltd.,[Link] (UNIQLO)html.

2. “Uniqlo.” fashionabc, [Link]

3. Husband, Laura. “Fast Retailing reports record fiscal 2022 profit.” Just Style, 13 October

2022, [Link]

4. Smith, Sophie, and Lauretta Roberts. “International sales boost Uniqlo's FY22 results.”

[Link], 13 October 2022,

[Link]

5. “Fashion Statistics Japan.” Fashion United, [Link]

6. Beattie, Elizabeth. “With eye on growth and sustainability targets, Uniqlo rethinks retail

spaces.” The Japan Times, 19 April 2023,

[Link]

7. Shamsul. “PESTLE Analysis of Argentina.” WiseLancer, 2 May 2022,

[Link]

21
 8. Ahmed, Zia. “PESTEL analysis of Argentina (Profile of Argentina).” howandwhat, 22

July 2021, [Link]

9. “GDP (current US$) - Argentina | Data.” World Bank Data,

[Link]

10. “Development and importance of tourism for Argentina.” [Link],

[Link]

11. “Apparel - Argentina.” Statista, [Link]

12. Lominé, Loykey. Muchena, Martin. Pierce, Robert A. Oxford Business Management IB.

Oxford University Press, 2014.

13. “Argentina recibió más de un millón de turistas del extranjero en la temporada de

verano.” [Link], 11 April 2022,

[Link]

extranjero-en-la-temporada-de-verano.

14. “eCommerce Market Argentina - Data, Trends, Top Stores.” [Link],

[Link]

22
 15. “Salario mínimo - Argentina.” [Link], June 2023,

[Link]

16. “Observatorio Turístico | Sitio oficial de turismo de la Ciudad de Buenos Aires.” Turismo

Buenos Aires, [Link]

17. “Results Summary.” FAST RETAILING CO., LTD., 13 April 2023,

[Link]

18. Roll, Martin. “Uniqlo - The Strategy Behind The Japanese Fast Fashion Retail Brand.”

Martin Roll, January 2021,

[Link]

panese-fast-fashion-retail-brand/.

19. Aaker, David. “6 Reasons Why Uniqlo Is Winning.” Prophet,

[Link]

20. Kumar, Rohit, and Shubh Majumdarr. “The Uniqlo Case: Fast Retailing Recipe for

Attaining Market Leadership Position in Casual Clothing.” Rutgers Business Review, 11

September 2022,

[Link]

23
 21. “Argentina - Market Entry Strategy.” Privacy Shield,

[Link]

24